Is Floor & Decor Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Floor & Decor Holdings, Inc. has moved from fair to very expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 38, a Price to Book Value of 3.46, and an EV to EBITDA of 14.62, all of which are significantly higher than its peer, which has a P/E of 44.72 and an EV to EBITDA of 17.72. This suggests that Floor & Decor is trading at a premium compared to its industry peers.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -28.48% compared to the S&P 500's 13.30%, and a one-year return of -34.20% against the S&P 500's 14.08%. This performance reinforces the notion that the stock may be overvalued given its high valuation ratios and poor return metrics.